Statkraft and Norfund agree new ownership structure for SN Power

11.11.2008 09.27 | stock exchange information

(Oslo, 11 November 2008) StatkraftAS and Norfund have agreed a new ownership structure for SN Power. Statkraft increases its shareholding from 50 to 60 per cent from the implementation of the agreement, with an option of a further increase to 67 per cent by 2015. Norfund is guaranteed an opportunity to sell all or part of its shares during the same period. A separate company will be established for the development of power projects in Africa and Central America.

"The increased shareholding in SN Power supports Statkraft's ambition to develop its role as a global niche player within hydropower and other renewables. SN Power's market positions in Asia and South America gives a strong starting point for long-term, global positioning," says Statkraft CEO Bård Mikkelsen.

"The deal with Statkraft will contribute to a significant strengthening of Norwegian hydropower investments in developing countries", says Mr. Kjell Roland, Managing Director of Norfund. "New capital will allow SN Power to grow further. Simultaneously, additional resources can be mobilized for new projects in Africa, where we hope to be joined by a larger number of Norwegian companies. In sum, the deal builds a firm foundation for deeper co-operation between our two companies also in the future", Mr. Roland adds.

Statkraft will acquire 10 per cent of the shares in SN Power for NOK 1.1 billion, bringing its stake in the company to 60 per cent. In addition Statkraft will have an option to buy another seven per cent of the shares in 2015, or when the investment portfolio in Africa reaches 500 MW.

At the same time, Norfund is granted an opportunity to sell its shares in SN Power through put options on remaining shares in 2010, 2013, 2014 and 2015. The pricing of the shares, and Statkraft's financial obligations towards Norfund, will be based on independent valuations when the options are exercised. Norfund can sell up to half of its remaining shares in SN Power (20 per cent) to new investors, with the exception of international competitors of Statkraft, by the end of 2010.

Together, SN Power and Norfund will establish a separate company for investments in Africa and Central America. The company will be owned 51 per cent by SN Power and 49 per cent by Norfund.

The agreement is expected to take effect on 1 January 2009.

Statkraft is a European leader within renewable energy. The Group develops and generates hydropower, wind power, gas power, solar power and district heating, and is a major player on the European energy exchanges. In Norway the company supplies electricity and heat to around 600,000 customers through its shareholdings in other companies. In 2007 Statkraft posted a profit after tax of EUR 827 million and employed more than 2,300 employees in ten countries. The world needs pure energy. This is what Statkraft delivers every day.

Norfund (the Norwegian investment fund for developing countries) aims at creating sustainable economic growth and employment in developing countries by investing risk capital and know-how. Direct investments are made with Norwegian and other partners, while indirect investments are made through fund managers who in turn invest in local companies. In 2007 Norfund's investment capital was NOK 3.8 billion and the company had 35 employees world-wide. Norfund's core business includes renewable energy, direct investments, funds and financial institutions (including micro finance).